HF 2602 Summary

• Establishes a Clean Transportation Standard Act requiring Minnesota to reduce aggregate carbon intensity of transportation fuels 25% below 2018 baseline by 2030, 75% by 2040, and 100% by 2050.

• Creates a credit and deficit trading system where fuel providers can comply by producing low-carbon fuels or purchasing credits from cleaner fuel producers, with calculation based on Argonne National Laboratory's GREET model.

• Provides credit premiums of 5% for biofuels using soil-healthy farming practices and 10% for biofuels from continuous living cover cropping systems, with verification through satellite and aerial monitoring.

• Prohibits credits from carbon capture used for enhanced oil recovery, biofuels from cropland with less than five years cropping history, and renewable natural gas from new or expanded livestock facilities.

• Appropriates $900,000 in fiscal year 2024 to the Pollution Control Agency and requires a legislative report 48 months after rule implementation and periodic agency reviews every five years.